P R E S E N T E D B Y

First Arizona Title Agency has an advertising relationship with this real estate agent. There are many title and

escrow companies in Arizona and we would recommend that you shop for a title and escrow company before

making a selection.

16155 N 83rd Ave #105 Peoria, AZ 85382 PHONE: 623.385.1000 | FAX: 623.385.1021

2577 W Queen Creek Rd #105 Chandler, AZ 85248 PHONE: 480.385.6400 | FAX: 480.385.6804

21300 N John Wayne Pkwy #102 Maricopa, AZ 85139 PHONE: 520.518.5222 | FAX: 480.385.6906

1747 E. Baseline Road, Suite 101 Gilbert, AZ 85233 PHONE: 480.830.0883 | FAX: 480.385.6854

1616 N Litchfield Rd #110 Goodyear, AZ 85395 PHONE: 623.385.1050 | FAX: 623.385.1039

23200 N Pima Rd #101 Scottsdale, AZ 85255 PHONE: 480.385.6530 | FAX: 480.385.6933

1952 E Pecos Rd #103 Gilbert, AZ 85295 PHONE: 480.385.6524 | FAX: 480.385.6432

6263 N Scottsdale Rd #190 Scottsdale, AZ 85250 PHONE: 480.385.6500 | FAX: 480.385.6800

P i n n a c l e P e a k A r r o w h e a d / P e o r i a G o o d y e a r

S c o t t s d a l e B a s e l i n e C h a n d l e r / O c o t i l l o G i l b e r t / S a n Ta n M a r i c o p a

1C Lines 14-16 is to be utilized to provide the date/timing of earnest money/proof of funds will be delivered. Lines 17-18 is to check off what type of funds will be utilized for earnest money. Lines 19-20 - AAR has added these lines to require proof of funds to be attached to the offer. 1D Lines 29-30 is to highlight that closing funds are not covered by a loan contingency. Failure to tender closing funds is a material breach that can cause the buyer to forfeit his/her/their earnest money.

1G Lines 39-67 deals with Fixtures and Personal Property. Please note that anything attached/affixed to the premises constitutes fixtures. This includes wall mounted TV brackets and hardware, remote controls to any fixtures.

Additionally, if the buyer is requesting any personal property, AAR has added lines for the buyer to request these items with specificity by describing the type of item by brand, color and/or location within the home.

Lines 65-67 has been added to describe items that are not included in the sale due to the fact that they are leased. Seller shall have three days after the contract acceptance to tender, and buyer shall have five days to provide notice of disapproval after receipt of notice.

2C Lines 77-81 Unfulfilled loan contingency. If buyer fails to deliver notice of failure to obtain loan approval without PTD conditions, or a loan denial letter three days prior, the seller shall cure the buyer. Buyer shall have the opportunity to provide an unfulfilled loan contingency/loan denial letter prior to the expiration of the Cure, he/ she/they shall be entitled to a refund of earnest money.

2J Lines 100-102. Seller Concessions. This section outlines the concessions in either dollar amount or percentage of sales price that seller is willing to pay. Please note that the amount is “up to” and all concessions are not always used. Additionally, the section allows for nonallowed buyer costs for VA loans. If you are looking to insure that other fees can be paid by the seller that is not provided in this section, you will want to outline these fees in the additional term section of the contract. 2M Lines 111-114. Appraisal Cost(s). This section outlines who is paying for the cost, that it is nonrefundable and whether the fee counts against seller concessions.

3B Lines 120-122. This section outlines that if buyer is married and intends to take as his/

her sole and separate property, a disclaimer deed may be required.

3H Lines 152-153. Assessment Liens. This section outlines how assessment liens and bonds will be treated as part of the contract. Any lien, such as a Community Facility District lien, shall be prorated at closing. Your buyer should be aware that this lien will carry forward and become his/her/their obligation to pay for the duration of the lien period.

4A Lines 154-156. Seller’s Property Disclosure Statement (“SPDS”). Under the new contract, the SPDS disclosure period has been shortened from 5 days to 3 days after contract acceptance.

4C Lines 162-166. FIRPTA. This section outlines that if the seller is a foreign individual subject to FIRPTA, the seller will complete the necessary paperwork as required and be subject to up to a 15% withholding/remittance to the IRS of the purchase price. If the seller seeks accounting/legal advice, he/she/they has the responsibility to obtain it.

5A Lines 191-199. Warranties/Conditions of Premises. Under the new contract, there are no longer warrantable items. All properties are sold “As Is,” and as such, the “As Is” Addendum has been removed. The seller is under no obligation to fix any items as part of the contract. All items are subject to buyer request, seller approval.

6D Lines 233-236. Flood Hazard. The buyer has the obligation to investigate the premises and determine whether the property is in a flood hazard designation. The buyer shall note that he/she/they or his/her/their lender may require flood insurance to be purchased as part of the transaction. Additionally, if the property is in a “flood designated area,” the property may have certain restrictions for improvement/ development.

6F Lines 241-245. Sewer or On-site Wastewater Treatment System. The only change is the designation of conventional for septic. 6J Lines 264-272. Buyer Disapproval. The new contract has made changes as it pertains to the inspection/BINSR. If the buyer disapproves of the property but fails to specific any item(s) disapproved, the seller shall consider the contract cancelled. The seller should cure the buyer, and the buyer would have the opportunity to remedy the cure by specifying a disapproved item(s). In this case, if the buyer remedies the cure, he/she/ they would be entitled to a refund of his/her/their earnest money

6N Lines 305-309. IRS and FIRTPA Reporting. This section outlines the fact that if the buyer is buying a property subject to FIRPTA, the property may require up to a 15% withholding and remittance upon closing. If FIRPTA withholding is required, but the money is not remitted, the buyer could be held liable for the withholding tax. Buyer is responsible to seek independent legal and tax advice.

7A Lines 313-314. Cure Period. If the Escrow Company or Recorder’s Office is closed on the last day of the CURE Period, and COE must occur to cure the potential breach, COE shall occur on the next day that both are open for business.

8A Lines 344-389. Additional Terms and Conditions. The new contract simply expanded the section for any terms/conditions that need to be added/amended.

8G Lines 406-407. The Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards many not be signed in counterpart. This document requires both buyer(s) and seller(s) to sign the same document.

S C O T T S D A L E G I L B E R T / S A N T A N

P I N N A C L E P E A K G O O D Y E A R B A S E L I N E

M A R I C O P A C H A N D L E R

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